Helping your business to secure Financial
Related Licenses in onshore and offshore
BBS provides full range advisory and consultancy for international financial businesses and entrepreneurs in obtaining the relevant licenses to operate their business ventures effectively.
To carry out the money broking business, the licensee can perform these activities:
- Matching the counter-parties on mutually acceptable terms for the same financial products in money or foreign exchange market to facilitate the conclusion of a transaction.
- To receive payment for its service in the form of brokerage or commission fees. The fees charged must be adequate and appropriate.
- Acting as a mediator and strictly not permitted to act as a principal. (*Note: Principal will ‘deal for their own account and based on its own risk’. This Guidelines restricts position-taking by the Labuan money broker.)
- Cryptocurrency and ICO token distribution
The eligible applicant to carry on this activity in Labuan IBFC may applicant is required to submit the following:
- Provide a certificate of evidence to certify that the paid-up capital as specified has been deposited with a bank in Labuan or Malaysia for this license.
- The persons in control, directors and principal officer of the applicant must be fit and proper persons.
- Additional information or documents as required by Labuan FSA for the purpose of determining the merits of the application.
The annual license fee payable for Labuan money broker is RM5,000 upon the grant of its license. The subsequent payment of annual license fee payable on or before 15 January of each year.
Maintain a paid-up capital unimpaired by losses of at least RM500,000 or its equivalent in any foreign currency. Labuan FSA may also exercise its discretion to require additional capital to commensurate with the business operations of the Labuan money broker, considering the risk profile as well as nature, scale, complexity and diversity of their business activities.
Labuan money broking business is intended to serve the institutional investors and high-net worth individuals.
In this regard, the Labuan money broker is expected to impose a maximum leverage limit of 100:1 on its clients’ trading transaction that would translate to a minimum of 1% margin deposit to enable the opening of a trade position.
For illustration purpose, assuming that the transacted volume is USD100,000, the minimum margin requirement will be equivalent to USD1,000.